PART D

Required Information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Date Placed in Asset Cost Service Office furniture $ 150, eee 02/03/2019 Machinery 1,568, eee 07/22/2019 Used delivery truck 40, eee 08/17/2019 *Not considered a luxury automobile. During 2019, Karane was very successful and had no 3179 limitations) and decided to acquire more assets in 2020 to Increase its production capacity. These are the assets acquired during 2020: Date Placed in Asset Cost Service Computers & info. system $ 480,000 03/31/2020 Luxury autot 80, cee 05/26/2020 Assembly equipment 1,288,888 08/15/2020 Storage building 789, eee 11/13/2020 tUsed 100% for business purposes. Karane generated taxable income in 2020 of $1,732,500 for purposes of computing the 3179 expense limitation. (Use MACRS Table 1. Table 2. Table 3, Table 4, Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) C. Compute the maximum 2020 depreciation deductions, including 3179 expense, but now assume that karane would like to take bonus depreciation as well. Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction S 0 2019 Assets Office Furniture Machinery Used Delivery Truck Olo 2020 Assets 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 0 0 Total 2020 Cost Recovery S 0 0 s $ 0 $ d. Now assume that during 2020, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2020 cost recovery, Including 8179 expense and bonus depreciation. Karane purchased the following assets for the lump- sum purchase price: (Round your final answers to the nearest whole dollar amount.) Date Placed in Asset Cost Service Inventory $220,000 89/15/2020 Office furniture 230,00 89/15/2020 Machinery 250, eee 09/15/2020 Patent 198, eee 89/15/2020 Goodwill 2,000 89/15/2020 Building 430, eee 09/15/2020 Land 20, eee 09/15/2020 Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction $ 2019 Assets Office Furniture Machinery Used Delivery Truck Ooo 2020 Assets 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 0 0 Inventory Office Furniture 0 0 Machinery Patent Goodwill ololo Building Land 0 Totals S 0 S 0 S 0 S 0 9 O 9 0 s 0